When we think of doing things “part-time” it doesn’t usually conjure up images of great success. We think of part-time as good for a little while, but not a long-term solution. But the truth is, part-time doesn’t have to be a temporary gig while you wait for something better to come along.
Part-time can give you incredible opportunities for financial freedom—when it comes to real estate investment.
Too many people think that it’s not worth investing if you can’t dedicate
yourself to it full-time, but that’s simply not true. You can invest, and invest successfully, without breaking your back, quitting your day job, or working long hours.
It sounds too good to be true, though, doesn’t it? Well, here’s the good news—it’s not. This article is by no means a definitive or even exhaustive look at the topic. There is a ton of detail and much of it can be found right here on the Memphis Invest real estate investing blog.
We cover the essential topics constantly in our articles. But this one is designed to provide a quick, 30,000 ft over-view of investing passively and part-time. Turnkey real estate is designed to be exactly that. One word of caution before you continue reading.
You will never hear Memphis Invest suggest you be completely passive about your passive investments. That is why this is called part-time investing. The amount of time you have to be willing to put toward your portfolio is minimal, but important!
How Investing in Real Estate Can Be Truly Passive
Part-time passive real estate investment is possible through turnkey investing! It’s what we at Memphis Invest specialize in as a turnkey real estate provider. Turnkey real estate enables investors to be a part of this business without a massive time commitment.
If you’ve ever wanted to invest but have worried about balancing it with your other obligations, it really is the answer you’ve been searching for.
How Turnkey Real Estate Investment Works
Disclaimer, as always: there will be variations in this model. Not every turnkey provider operates the same way. But in essence, they will locate and buy ideal investment properties and renovate them. Then they will find tenants and, through either a property management partner or in-house management, will take care of all the day-to-day operations of the property.
For you, the investor, you purchase the property from the provider, bypassing the long and stressful process of searching for and acquiring properties the traditional way. You can then immediately begin to reap the rewards of the property’s passive income—without having to find tenants or go through the hassle of renovations yourself.
The property management takes care of things for you from that point, with your involvement in major decisions and regular updates when you want them (usually every month). You don’t have to be more involved than you want to be!
That’s how you do passive real estate investment.
How Do You Know Part-Time Investing is For You?
Passive real estate investment isn’t for everyone. Everyone has different goals, interests, and personalities, and that’s reflected in the types of businesses and investments you prefer to get involved in.
Passive Real Estate Investment is for You If…
You See Investing as Supplemental Income
Some real estate investors dive in and embrace their investments as a whole new career. They want it to be their sole source of income. But maybe that’s not what you want! Maybe you just want it to be supplemental to your current job—building up income while you work on what you really love and are passionate about. That’s where passive investing really shines. You can focus on doing what you love, while your investments help support your ambitions.
You’re Interested in Investing Out-of-State
Investing in out-of-state markets can be challenging if you’re going at it alone. When you partner with a turnkey provider who both knows the area and is prepared to take care of the fine details for you, it’s not so challenging! In fact, it’s the best way to mitigate risk. If you want to tap into the potential of a far away market, turnkey is the way to go.
You Prefer a “Hands Off” Approach
Not everyone is interested in the details. When it comes to real estate investment, it can get easy to get bogged down in the weeds, especially if you go at it alone. Getting wrapped up in landlord responsibilities, property hunting, nonstop market research and finding contacts...it can easily become a full time job. If you’d prefer to sit back and do only what you need to do and let other people take care of the little things, be a passive investor. Work smart, not hard.
It May Not Be a Fit for You If…
You like working in the details. Certain types of investors just enjoy the details. They like getting in there themselves and dealing in every aspect of their business. If that’s your personality, more power to you! These investors are the type that enjoy flipping, for example. They like the quick returns and clear results and seeing and being involved in the process themselves. If you enjoy that, passive investing might not be satisfying for you.
You want investment as a career. Some real estate investors want a new job and a new career in investing. They want to build a name and a brand for themselves. And that’s a full time job! You can still do that as a turnkey investor...in fact, you probably need the help of a turnkey provider so you can focus on the other parts of your career. But if you want it to be your career, it has to be your career. That takes scaling, dedication, and hard work. Not part-time passive commitment.